In Mexico, Tesla Will Build a New Factory

(CTN News) – A Tesla factory is being built in Mexico, joining other automakers expanding their operations south of the border.

Andres Manuel Lopez Obrador, the Mexican president, said the plant would be located in Monterrey, approximately three hours from Dallas.

It is expected that Tesla will share more information in its presentation to investors on Wednesday.

Prior to the factory’s construction, Mexico expressed concerns about the potential impact the factory might have on the region.

Mr Lopez Obrador, however, noted that he had secured commitments from Tesla CEO Elon Musk that helped alleviate some of these concerns.

It is Mexico’s intention to position itself as a winner as tensions between the US and China disrupt traditional supply chains.

According to Mr Lopez Obrador, this will result in substantial investment and the creation of many, many jobs.

President Biden has stressed the importance of made-in-America rules for cars to qualify for new subsidies in a massive climate change spending plan approved last year.

The rules do not apply to Canada and Mexico, which have seen their roles in automobile manufacturing grow as American firms seek to reduce costs abroad.

After opening factories in China and Germany in recent years, this would be Tesla’s third factory outside of the United States.

The newest Tesla factory represents a $1 billion investment, which could grow to $10 billion in the future.

In an interview with Milenio Television, Mexican deputy foreign minister Martha Delgado said the investment was worth “over $5 billion” and that the factory would produce about a million vehicles annually.

An unnamed Mexican official told Reuters that the plant will be a Tesla “gigafactory” that will manufacture vehicles including trucks and sports cars.

A request for comment on the latest expansion of the company was not responded to.

With drivers shifting to greener modes of transportation, Tesla, like other automakers, anticipates that sales of electric cars will rise rapidly in the years to come.

Tesla’s announcement comes just a few weeks after BMW announced that it was planning to build a factory in Mexico. In addition to its electric SUV, Ford also manufactures its vehicles here.

Announcing plans to build an electric car plant in Mexico last year, General Motors was criticized by the United Auto Workers trade union.

It has been closely watched as a test of the investment climate under Mr Lopez Obrador, a left-wing populist who was elected in 2018.

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